Abstract
We began with the premise that South African recent migrants from rural to urban areas experience relatively lower rates of participation in formal labour markets compared to local residents in urban communities, and that these migrants are overrepresented in the informal labour market and in the unemployment sector. This means that rural to urban migrants are less likely than locals to be found in formal employment and more likely to be found in informal employment and among the unemployed. Using perspectives from Development Economics we explore the South African National Income Dynamics Study (NIDS) panel datasets of 2008 and 2010, which only provide a perspective on what has happened between 2008 and 2010. We find that while migrants in general experience positive outcomes in informal labour markets, they also experience positive outcomes in formal markets, which is contrary to expectations. We also find that there are strong links between other indicators of performance in the labour market. Earned incomes are closely associated with migration decisions and educational qualifications (e.g. a matric certificate) for respondents between the ages of 30 and 60 years. The youth (15 to 30 years old) and senior respondents (over the age of 60) are the most disadvantaged in the labour market. The disadvantage is further reflected in lower earned incomes. This is the case even though the youth are most likely to migrate. We conclude that migration is motivated by both push (to seek employment) and pull (existing networks or marriage at destination) factors. For public policy, the emerging patterns – indicative and established – are important for informing strategies aimed at creating employment and developing skills for the unemployed, migrants and especially the youth. Similar policy strategies are embodied in the National Development Plan (NDP), the National Skills Development Strategy (NSDS), etc.
Highlights
One of South Africa’s big socio-economic challenges is its high rate of unemployment
This paper explores the current nature of the links between the challenges posed by rural and urban unemployment and how these may possibly have led to new patterns of recent internal migration, using the first two waves of the National Income Dynamics Study (NIDS 2008 and 2010)
These have included a focus on incentives to invest in human capital and on the migration of low and high skills between rural and urban regions, for example those presented in the Two-Sector Model which was first introduced by Lewis (1954)
Summary
One of South Africa’s big socio-economic challenges is its high rate of unemployment. Factors encourage youth migration into urban areas as reported in various quarters (e.g. South African Department of Social Development, 2009) This migration leaves rural areas with an aged and vulnerable population and exacerbates the problem of unemployment in urban areas where competion for scarce work is keen. This paper explores the current nature of the links between the challenges posed by rural and urban unemployment and how these may possibly have led to new patterns of recent internal migration, using the first two waves of the National Income Dynamics Study (NIDS 2008 and 2010). In this context, recent internal migration refers to any relocation across the first two waves of the NIDS datasets.
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